Case study: How one farm used rotational grazing to address a business challenge

When low financial margins in their beef operation had brothers Arron and Shane Nerbas seeking viable solutions, they turned to a rotational grazing production system. Now, you can almost physically feel the biodiversity in their grazing lands. That biodiversity is something the brothers are quite proud of – not just for its ecological value, but because it makes good business sense.

The operation

There can be a misconception that, to be profitable, sometimes the environment has to take a backseat. It doesn’t have to be that way.The Nerbas family is in the beef business, operating 500 Angus cow-calf pairs under their company, Nerbas Bros Inc., near Russell, Man. They also market breeding bulls and heifers and operate a small direct-to-consumer meat business in the nearby town.

High pasture biodiversity, a result of their intensive rotational grazing production system, is a critical component to it all. Indeed, rotational grazing has been a real boon for their bottom line, bringing cost savings and improvements in animal health, while adding value to their beef and genetics brand.

The business today looks much different from it did two decades ago, however. Not always an easy process, the brothers say the transition from conventional open range grazing to an intensive rotational system was one of the best decisions they ever made.

Why change was needed

Persistent low margins, a high labour burden, and vulnerability to external shocks post-BSE put the Nerbas family in a real financial bind, and with their continuous season-long grazing production method no longer profitable, a different approach was needed.

“In 2005, we took a holistic management course,” Arron says. “And that course was kind of the catalyst for change for us. BSE was right before that. Every beef operation was asking, ‘Where are we going from here?’ Nobody was in a good place. We started analyzing our business, and there simply wasn’t enough profit. We were working way too much for little return.”

“That’s what we took the course for. How do we become more profitable? And how do we balance our life so we’re not a slave to the farm?”

A new grazing approach

While the transition unfolded gradually, rotational grazing became a deliberate business lever. It helped the operation increase forage productivity, reduce reliance on purchased feed and improve the long-term viability of the herd on their existing land base. Upon reflection, Arron estimates they achieved over 100 separate paddocks sometime between 2010 and 2015.

“Infrastructure and time are always the biggest challenges. Fences need to be built and water systems and pipelines developed. We also fenced out all riparian areas and generally don’t allow access unless it’s a quick skim-graze occasionally. And mindset, of course. You have to want it,” Arron says, speaking to the hurdles inherent in the transition process. 

Greater forage production was one of the earliest signs that their efforts were generating positive returns. More biomass meant more grazing days and higher carrying capacity.

“The second thing we noticed was the health of the land and the ecosystem benefits that followed, with increased biodiversity and wildlife,” Arron says. “One you can’t see is the below-ground benefits to the life that feeds the soil. If below ground is healthy, above ground is healthy. It’s a mirror image. Natural systems flourish.”

Putting rotation into practice

The Nerbas brothers implemented what Arron calls an adaptive grazing program based on the five per cent rule – where only five per cent of their land base is under grazing at any given time. That leaves the remaining 95 percent in rest and recovery, anywhere between 45 days and a full year. They ensure the herd keeps moving by strategically bale grazing between 110 and 120 days beginning early December. Annually, they average 240 grazing days. Overall, the adaptive grazing program is based on grass growth, not the calendar, to determine carrying capacity and long-term pasture productivity.

“We’re just using the two main things that are free – sunlight and rain – and we’re maximizing those,” Arron says. “45 days is the minimum you want to strive for in a rotational system like this. We also like to be disruptive and always changing our grazing patterns, which is great for biodiversity and maintaining species diversity.”

Management and cost impacts

Broadly, savings add up with reduced exposure to feed and wintering cost volatility. At the same time, every farmer and rancher faces different costs depending on land prices, labour availability, infrastructure, and other factors, making it difficult to determine exactly how much in cost savings a rotational system can deliver. Based on grazing day averages from the Canadian Cow-Calf Cost of Production Network, Arron estimates their system saves $157.50 per head, or $78,750 annually for their herd.

“This takes no other beneficial side effects of our management to the soil, grass ecosystem, etc., into account, which are numerous and real. It also doesn’t take into account the reduced capital assets needed, and most specifically, high-priced land that you need more of if your production of forage biomass is considerably less per acre,” he says.

On-the-ground results

The varied grazing strategy within their rotational system also helps redistribute manure nutrients, further supporting regrowth. Their pastures now produce an estimated two-and-a-half times as much biomass as under their previous conventional grazing system, reducing land-based pressure while maintaining high forage quality.

They’ve also found gains in herd health.

“What’s in a corral? All the pathogens and manure in there stay there. If cattle are constantly out and moving onto fresh ground, even in summer, they’re leaving their manure behind. The flies and dung beetles are following the cows, but they’re not necessarily with them all the time as they’re moving forward,” Arron says. “We don’t have to treat the herd in winter. They’re so completely happy and healthy, bale grazing. It’s just a game changer from a management standpoint.”

He adds that pink eye in calves is one situation that requires active system management, often arising when pasture biomass grows tall enough to interfere with the calves’ heads. Proactive treatment, however, helps keep the problem well in check.

Industry input

The production, management and ecological gains observed by the Nerbas brothers are not unique. According to Bart Lardner, professor of beef cattle and forage management in the Department of Animal and Poultry Science, University of Saskatchewan’s College of Agriculture and Bioresources, they’re inherent across well-developed rotational grazing systems in western Canada.

While different types and scales of rotational grazing exist, Lardner says that the wider deposition of manure and urine reduces input costs for key nutrients, specifically nitrogen and phosphorus. The deposition of organic waste, along with hoof impaction and surface disturbance, can also contribute to carbon sequestration and healthy soils. Indeed, Lardner says the introduction and controlled movement of animals can effectively remedy poor structure, saline areas, and other issues associated with degraded soils.

Allowing pasture species to regenerate and rejuvenate also brings establishment and labour savings, while preventing drops in biomass productivity.

“If you’re going to establish a perennial pasture, usually a grass-legume mix, there’s going to be establishment costs,” Lardner says. “The problem I’ve seen is producers establish a perennial forage stand but don’t treat it like a cash crop. They don’t soil test. It degrades over time. After four or five years, the biomass is going to go down. You’ll see more grazing-tolerant plants, such as weeds and invasive species, dominate and make the pasture resource less productive and of poorer quality.”

“I’ve seen many producers successfully bring in various rotational systems that prevent that from occurring. You can do it in the winter, too, just to capture nutrients so they are available in the spring and the subsequent crop. It saves on diesel and tractor starts all winter. All you have out there is a portable fence.”

“Conventional grazing is continuous, which is zero management. If you put the animals out in one field and don’t implement a system of some kind, they’re going to selectively graze whatever species they want, which contributes to pasture degradation. With some simple tools like a portable electric fence, watering systems, and so on, you can manage that successfully. Grazing is still a disturbance, but a positive disturbance if you do it correctly.”

Business takeaways

No two livestock businesses are the same, and making significant changes to a production system brings its own risks. Rotational grazing is one viable business pathway, contingent on management capacity and context - costs associated with fencing and watering infrastructure need to be considered, as well as herd size and land base, for example.

“Feed is the most expensive part of your production. We made the decision we want to graze as long as possible throughout the season,” Arron says. “That’s only possible if you make it possible. If you only have a land base for 100 cows and you’re winter feeding for six months and grazing for six months, you’re kind of stuck in that pattern unless you change something. Either you need more land to graze, or you need fewer cows. Something has to give in that balance.”

It’s a practice to ease into, he says.

“It’s a balance between your acres, the number of animals and your grazing goals. If you have a herd of 100 and you split a quarter section into four areas, it’s going to be rotational overgrazing, but you will still see some benefit.”

Arron also believes there are several business reasons to begin the transition to rotational systems.

When beef prices are high, for example, savings from rotational grazing provide opportunities for farmers and ranchers to reinvest in their businesses. New and improving technologies like drones make locating animals easier, while virtual fencing, temporary waterers and other tools provide less labour-intensive management options. Cost-share funding for such tools is also available under the federal programs, such as the On-Farm Climate Action Fund, further easing the cost of business reinvestment.

Lardner agrees that the flexibility and savings afforded by modern technology, particularly fencing, make adopting rotational systems easier and more cost-effective.

“The expensive cost of fence posts, wire and everything, just isn’t justifiable when you have other really good tools,” he says. “An example is virtual fencing, where we have to figure out connectivity, and towers, and animals potentially damaging the equipment, but I think some of these modern fencing tools are an unbelievable advantage because you don’t have to run that fence through bogs and up mountains.”

Arron reiterates that his family’s transition to rotational grazing was done to achieve economic goals, not lifestyle and environmental ones. They nonetheless found improvements in all three areas and feel good about raising animals in a way that supports, rather than takes away from, the land. Profitability, resilience and environmental outcomes now work together on the Nerbas farm.

“Holistic management is a three-legged stool. It’s the economic and lifestyle component, but there’s an environmental component as well. We didn’t do it for the environmental component, but the environmental component is equally as important and has been the big winner in our system because our land is healthier, we have more biodiversity, we share our land with the wildlife, and they flourish,” Arron says.

“There can be a misconception that, to be profitable, sometimes the environment has to take a backseat. It doesn’t have to be that way.”

Article by: Matt McIntosh

Read next

Weathering the risks: How to build climate change resilience on your farm

3 min read

Sustainability

Discover effective risk management strategies for building climate change resilience on Canadian farms.